Northrop Grumman Agrees to Pay $12.5 Million to Settle Civil False Claims Act Case

U.S. NewswireJune 23, 2010

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WASHINGTON, June 23 /PRNewswire-USNewswire/ -- Northrop Grumman Systems Corporation has agreed to pay the United States $12.5 million to settle allegations that it knowingly submitted false claims to a number of government agencies in connection with electronic parts the company supplied for use in the manufacture of navigation systems for military airplanes, helicopters, submarines and certain equipment used in space, the Justice Department announced today.

The United States alleged that Northrop's Navigation Systems Division, located in Woodland Hills, Calif., failed to test certain commercial-grade electronic components to ensure that they would function at the extreme temperatures required for military and space uses. The agencies affected by Northrop's alleged misconduct include the Navy, Army, Air Force, Defense Logistics Agency, the National Aeronautics and Space Administration (NASA), the Coast Guard and the Forest Service.

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Northrop Grumman Agrees to Pay $12.5 Million to Settle Civil False Claims Act Case

"Companies that do business with the government must comply with all of their obligations," said Tony West, Assistan...

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